...the same class as Amber which do not possess the extravagant amenities of an on-site restaurant or meeting rooms. For Amber to make its hotel stand out amongst the others is a very difficult task with so many other companies present in this industry. The next level of competition would fall to recreation vehicle parks and camping sites. For the price-conscious individual, this may pose as an easier solution, but does not give someone the comfort of a traditional bed and amenities like television. Also, with a presence in the rocky mountain and western area, weather plays a contributing factor into this scenario. The indirect competition to Amber Inn & Suites is potential company cutbacks and layoffs. This not only affects their business traveler base, but also could affect if individuals have the luxury to travel and stay in a hotel opposed to a relative or friends residence. Strengths Location is a key factor to the success of Amber, because the company avoids the downtown...
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...concepts which were studied in “Competitive Advantage through People” course. More specifically, the purpose of this essay is to consider Lonely Planet and apply the concepts of trust, intrinsic motivators and stakeholders management to it. It is very important for managers to develop a better understanding of building trust in their organization, since lack of trust between employees and managers can reduce the productivity. Not only that, trust between staff people within the company itself can also lead to increase in trust of brand. The products of Lonely Planet were in the way that attracted many travelers in the world that influenced them to trust the Lonely Planet brand. One of the main slogans of Lonely Planet is “Honest, trusted travel content that spans the globe”. This exhibits that the company stresses significantly on both honesty and trust which has inspired travelers to explore the world for over 30 years by now. In other words, brand loyalty of Lonely Planet due to trust by word of mouth is attracted and encouraged many people to be its customer. Undoubtedly, trust in the company can creates an environment in which creativity and innovation flourish. This is due to increase in collaboration and engagement of colleges with one another. As a matter of fact Lonely Planet seems to attract creative people. For instance Steve Hibbard in Lonely Planets with the welcome and support of founders restructured the...
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...lodging accommodations that are designed to fit varying needs and budgets. Marriott has several business units such as Marriott Hotels & Resorts, Courtyard by Marriott, Residents Inn, Fairfield Inn, and Marriott Vacation Club International. The commonality between all of the properties that Marriott International owns is that they all have a clear business-level strategy that allows them to focus on particular customer groups. Examples include the Residents Inn is focused on customers that need amenities that go beyond the average but allow the traveler to have a sense of freedom, like they are at home or the Marriott Vacation Club International, which is classified as a luxury timeshare operation. The particular business unit that is described in this report is Fairfield Inn. The Fairfield Inn chain is currently using a focused cost leadership business-level strategy. In Fairfield Inns, there are several things that allow the Marriott Company to control cost and offer accommodations at a reduced rate to customers. There are usually no full-scale restaurants within in the main hotel. This means that the company does not have to employ staff to run it, which is costly to the bottom line. Also, the company uses value linens and furnishings to decorate the rooms. This provides a clean look and feel at a low cost. The target audience, or focus, of Marriott International is the traveler who is looking for a “no-frills” place to stay. This is demonstrated by the standard amenities...
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...in the country. “Southwest seeks to offer a travel product that is built around flights targeted to specific demographics and ticket pricing that is simplified so that passengers know exactly what they getting for what they pay” (Bhutada, 2009). Market Brand Southwest has created a strong market brand by focusing on points of difference. “Points of difference are attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand” (Kotler, Keller, 2012). The points of difference for Southwest has been its focus on reliability, the value the airline offers its customers, and the fact it’s a fun airline to fly. Target Market Market segmentation in the airline industry is not as straightforward as it may seem. Airlines may consider it common sense to simply separate the market into business and economy class passengers. “However, airline companies that rely solely on flight class as the segmentation criterion may not be able to customize their product offerings and marketing policies to an appropriate degree in order to respond to the shifting importance and growing complexity of customer choice drivers” (Teichert, Shehu, von Wartburg, n.d.). Separating the market into business and economy class passengers has never...
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...Airbnb, Inc. Marketing Plan Table of Contents Executive Summary 3 Situational Analysis 3 Company Analysis 3 Company and Marketing Objectives 4 Screening Criteria 5 Company Resources 5 Present Marketing Strategy 6 Marketing Collaborators - Current & Potential 7 Political and Legal 7 Competitive Analysis 9 Customer Analysis 11 Demographic Data 12 Market Analysis 12 Who is the target market? 12 Problem and Opportunity Summary 13 S.W.O.T and Key Factors from Situational Analysis 14 Strengths of Airbnb 14 Weaknesses of Airbnb 14 Opportunities of Airbnb 15 Threats of Airbnb 15 Target Market 15 Positioning Strategy 20 Other Core Strategies 22 Product 23 Product Life Cycle 27 Channels 27 Sales building blocks – techniques 28 Price 29 Promotion 33 Hospitality Forecast and Airbnb future 36 Conclusions: 37 Bibliography 38 Executive Summary Airbnb, Inc was built because of a risky idea and the company has continued to take risks as they have grown since 2008. That tendency of taking a risk has grown the company from eating dry cereal to survive, to being worth around $10 billion. Airbnb will continue to take that risk and succeed with their outlook toward customer service and providing the “sharing community” that Brian Chesky, Joe Gebbia, and Nathan Blecharczyk dreamed up. Opportunities for expanding brand awareness are what the company will focus on now with more advertising by mainstream media and word of mouth...
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...Consulting project in Strategy and Organization 2014 Autumn 2014 Authors Carolyne Kako Alexander Kanani Roland Kassemeier Petteri Kivelä Lennart Kuhrt Francesco Licitra Supervisor: Björn Trägårdh 2 Table of Contents 1. Introduction ........................................................................................................................................ 3 2. Conceptual overview .......................................................................................................................... 3 3. Methodology ....................................................................................................................................... 3 4. Findings ............................................................................................................................................... 4 4.1 Who are we? ................................................................................................................................. 4 4.2. Upframing .................................................................................................................................... 5 4.2.1 Value Constellation ................................................................................................................ 5 4.2.2 Alternative value constellations............................................................................................. 5 4.2.3 Competitors ...................................................
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...today use cars and airplanes when traveling long distances. However, choosing which mode of transport is best for a traveler generally relies on a few factors – price, comfort, safety, time and potential delays. So, what is the best way to travel long distances? Price is a key component in deciding how to make it from one place to another, because traveling any distance these days comes at some sort of cost. At one time, the car was the least expensive way to travel, because most people owned or had access to a car and gas prices were relatively affordable. However, even though newer cars are getting better gas mileage as technology progresses, the lack of continuity in gas pricing nationwide makes it nearly impossible to accurately gauge how much gas would cost. Additionally, it is regularly suggested that a car have a full maintenance check before long distance travel. At the very least cars should have their fluid levels, brakes, and tires inspected and replaced, if needed. Some travelers do not want the extra “wear and tear” on their personal vehicles, electing to rent a car instead, but the traveler now pays for the use of the vehicle, taxes, miscellaneous fees, overpriced insurance and the same price for gas they would have to pay for while using their own vehicle. Traveling by airplane seems far less complicated now, right? When traveling by airplane, travelers still need to be diligent and fiscally responsible. When using an airline company website or a discount travel website...
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...alliances with other airline carriers are areas that should be explored to enhance services at Southwest. While each of the above mentioned services are all luxuries that many customers would enjoy having on a flight the airline the airline must establish if they are all luxuries that customers would also be willing to pay for. Southwest prides their business on being able to offer low-cost fares adding services would mean increasing rates. Southwest must determine if the risk is worth the reward. This case study will help Southwest make some of those determinations. Introduction: LUV Southwest Airlines is defined by their mission statement: “dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit” (Southwest, 2015). When making decisions on which path the company should take Gary Kelly, the current CEO, has to circle back to this one sentence and establish if the business in on target. In Southwest’s 38 year history they have been able to maintain their reputation for fun and pride their development on a “luv” theme. This has allowed them to grow to becoming the fifth leading airline based on passengers transported and...
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...flights, crowded airports and worse overbooked flights; this is all part of the traveling experience, especially when it comes to airlines. No matter which airline it is they all tend to be the same. One airline is out to change that, through lower prices and even better, a focus on you the customer. That company is JetBlue led by its visionary Founder and CEO David Neeleman. Neeleman believes so strongly in delivering customer value to his passengers that he often rides flights to hear personal direct feedback from passengers as it is happening, and he also likes to be paged whenever a flight is delayed or something in the JetBlue business is not properly executed according to the JetBlue standards (Johnson, & Weinstein, 2004 pg 315 – 316). Neeleman has set forth three guiding principles that are known as the “Golden Rules” and govern the business of JetBlue and its employees. Those principles are: flawless executions at every customer contact point, making matters right with the customers if the execution is not flawless and treating employees well (Johnson, & Weinstein, 2004 pg 317). Neeleman who was formerly a founder of another airline and longtime leadership member of rival Southwest feels that combining efficiency, technology, and a focus on customer value will continue to drive customer loyalty around what has become one of the, if not the single, strongest brands in the Airline industry. Neeleman and JetBlue have set out with the goal of “bringing humanity back...
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...Executive summary Virgin Australia is a well known Industry Airline all through the world. In this report I will explain about an analysis of Virgin's present position and to focus the conduct of the industry regarding whether it is performing above or beneath desire. On the foundation of this analysis, suggestions are suggested to help the organization with answers for help to avoid failure if such circumstance was to happen. The report is structure as takes after: In the first area I will give a short foundation of the organization and how it got to be so outstanding. At that point the analysis of Virgin's macro-environment and current strategy and circumstance will be given to support with giving the perfect suggestions to the organization. The objective of this report is to furnish Virgin with important proposals that can help or enhance their current circumstance so they can perform above desire. Introduction Strategic management Strategic management comprises of the examination, choices, and activities an association embraces keeping in mind the end goal to make and support preferences. This definition catches principle component that go to main field of strategic management. The strategic management of an association involves three progressing procedures: analysis, choices, and activities. In order that strategic management is an interest with the analysis of strategic objectives (vision, mission, and goals) alongside the examination of the inside...
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...MGT 6753 Industry Analysis Low-Cost Carriers in Europe Julian Geiger, Michael Schlottke, Marcus Schrade MGT 6753 Industry Analysis Low-cost carriers in Europe Industry Overview The market for low-cost carriers first emerged in the US with Pacific Southwest Airlines, pioneering the concept in 1949. The European market did not really develop until aviation deregulation came into effect in the 1990’s, making flights affordable for a wider range of customers. Building on the inclining demand for cheap flights mainly by private individuals (average annual growth of 9.4% for leisure travelers between 1996 and 2003 [11], Figure 2), the industry has experienced rapid growth since then. Most notably, Irish airline Ryanair, formed in 1990, and British company EasyJet, formed in 1995, were able to shape the European market (Figure 3). Germanwings and Air Berlin are additional major players in the low-cost carriers (LCC) market throughout Europe. PEST Analysis The evolvement of the LCC industry in Europe was only possible through one major political decision in 1997 – the deregulation of the European flight market. Before, the market for flights was largely controlled by the governments of European countries, trying to secure their respective national carrier’s market share. This led to high prices for European flights – airfares were roughly twice as much as those for comparable distances in the U.S. [1]. After lifting most restrictions and enabling European carriers...
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...to compete with airlines that have established brand recognition. These solid brands in the airline industry are able to offer lower prices and better incentives than an incoming airline and these economies of scale increase entrant barriers. Also, the respectable number of established airlines that have made up the industry have a strong hold on airports hubs. These hubs are crucial to bringing and taking customers to and from airports. An entrant into the airline industry may not have these privileges which would stall their business. A greater threat to the airline industry would be substitutes. Substitutes are a medium threat to the airline industry. Recently oil prices have fallen below $30 a barrel and it is becoming increasingly cheaper to drive. The distance that one is traveling is a large determinate on the mode of transportation they will use. Planes could be replaced with cars, trains, or ships and as oil decreases, more and more travelers will choose to drive to their location instead of flying. There will always be those who fly, such as businessmen, but the trend of energy prices and...
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...Priceline, the Billion Dollar Travel Company Introduction Priceline is a company that is headquartered in Norwalk, CT and has an office in New York, NY also. There are over 400 employees helping Priceline continue to do business. Priceline was established in 1998 and inaugurated its first television commercial a year later in 1999. Priceline is an online entity that helps customers find favorable travel deals. Priceline collects commissions on user reservations. They use social media like Facebook, Twitter, YouTube, and Google+ to advertise specials that may not be listed on Priceline.com (2014). Although Priceline uses social media, they make it known that they do not need certain sites. Priceline.com provides vacation packages, rental cars, airline tickets, cruises, and hotel rooms all over the world. They have recently added restaurant reservations to their list of specialties. There are thousands of destinations and hundreds of countries to choose to travel or visit when booking with Priceline. Priceline uses three ways for customers to book travel: lowest retail rate, express deals, and name your own price. These options give travelers a little flexibility so they are able to get what they actually want. Priceline can broaden their business by giving customers more option on mobile applications and the name your price option. Current Use of the Web According to Anderson (2008), "Priceline.com is an Internet-based corporation offering services (airline tickets...
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...QUARTERLY CLASSIC HOTEL RATE FENCES Discounting in the Hotel Industry A New Approach Here’s the case made ten years ago for an approach to discounting that provides a rational method of price segmentation. The hotel industry is just now getting it. BY RICHARD D. HANKS, ROBERT G. CROSS, AND R. PAUL NOLAND T hree busy executives approach a hotel’s front desk, check in, receive their room keys, and head for the elevator. On the way up to their rooms, the topic of room rates comes up. As it turns out, Roy is paying $20 more than Jeanne, while Jennifer is paying $18 more than Roy. Yet all three are staying in essentially the same type of room. Those of you familiar with yield management already have figured out that this hotel’s yield-management system is in top working order. These three guests—all staying on the same night in similar rooms—have received different rates. You might be thinking that those rates are based on their differing needs and willingness to pay. You might also conclude that some logical factor differentiates those guests, something like flexibility in arrival dates or differences in when they booked their reservations. 94 Cornell Hotel and Restaurant Administration Quarterly Your conclusions would be wrong. These three guests booked their reservations on the same day, through the same source. What differentiates these guests has nothing to do with supply and demand, their needs, or their willingness to pay. The difference...
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...Harvard Business School 8-489-046 Rev. May 31, 2001 Jan Carlzon In June 1974, at the age of 32, I sat down behind the desk in the president’s office of Vingresor, a subsidiary of the Scandinavian Airlines System that assembles and sells vacation package tours. I’d been selected president after only six years of working life. I had authority over 1,400 employees, many of them roughly the same age as I. My qualifications were no better than anyone else’s, and there was no obvious reason for making me president. I was afraid—afraid that I wouldn’t be accepted and afraid that I would fail. I had taken over at Vingresor during troubled times. The 1973-1974 oil crisis had escalated air travel prices so much that passengers shied away from charter trips. It was our job to make Vingresor profitable again. We didn’t have many options. The main functions of a tour operator like Vingresor are to contract for flights and hotels and set up a service section at the travel resort that organizes excursions and activities. Then all these pieces are packaged together for the customer to purchase. The operator’s profit is to a great extent a question of cost: the more money invested throughout the various stages of assembling the package, the smaller the profit margin and the greater the chances of losing money. The less invested, the less the risk. In a sagging market, most product-oriented executives would have cut back on service. But this would only bring in less revenue, creating an...
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